Evaluating the Impact of Remittances on Human Capital Investment in the Kyrgyz Republic

Abstract

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Does Remittance Promote Socio-Economic Development? Evidence from Bangladesh

“…Additionally, there are some contradictory results. Gao et al (2021) discovered that remittances had a detrimental effect on educational spending and results in the Kyrgyz Republic. This might be because families receiving remittances prefer to allocate a more significant portion of their income toward purchasing long-lasting products rather than investing in human capital.…”

Measuring the Contribution of International Remittances to Household Expenditures and Economic Output: A Micro–Macro Analysis for the Philippines

“…However, not all empirical studies attribute positive outcomes to remittances. Several studies also suggest that remittances may fuel conspicuous consumption and/or disincentivize human capital investment if a typical job abroad does not require skills or if the children left behind, especially boys, are mobilized to work to meet labor needs (e.g., McKenzie and Rapoport 2011;Ang, Sugiyarto, and Jha 2009;and Gao, Kikkawa, and Kang 2021). In some countries, income from remittances is found to reduce the incentive to work in recipient households (e.g., Acosta, Lartey, and Mandelman 2009;Murakami, Yamada, and Sioson 2021).…”

“…In comparison, the estimated reduction in the share of food is much higher than the 0.0001 percentage points estimated in Wang, Hagedorn, and Chi (2021) in the context of remittance-receiving households in the Kyrgyz Republic as well as the associated increase in the share of spending on medical and related expenses (i.e., 0.0001 percentage points). The remittance receiving families in the Kyrgyz Republic are mostly in the poor income groups that are highly dependent on remittances (Gao, Kikkawa, and Kang 2021). This could explain the inelasticity of food items in the shock scenario.…”

Financial Remittance and Growth in Nigeria: Does Financial Development Matter?

“…As one of the largest recipients of remittances in Africa, Nigeria has seen a substantial influx of funds from its diaspora communities, which has raised important questions about the impact of these remittances on the country's economic growth. While there is a growing body of literature that suggests a positive relationship between remittances and economic growth (Hines & Simpson, 2019;Ngoma & Ismail, 2013), the mediating role of financial development in this relationship remains relatively underexplored (Okunade, 2022;Okunade & Ajisafe, 2022;Gao, et al 2021). Despite the increasing inflow of remittances into Nigeria, there is a lack of comprehensive research that empirically examines the extent to which financial remittances contribute to the country's economic growth.…”